A total of $1.2 billion was withdrawn on the 8th! The longest net outflow record of US stock Bitcoin ETF

Written byMarket Vision
Monday, Sep 9, 2024 4:10 am ET1min read

Investors have been pulling money from US bitcoin ETFs in the longest daily net outflows since the start of the year as they broadly withdraw from high-risk assets amid challenges in global markets.

Statistics compiled by institutional firms show investors withdrew nearly $1.2bn from 12 US-listed ETFs over the past eight trading days, as of Sept. 6. The sell-off comes amid a volatile period for equities and commodities markets amid concerns about economic growth.

The US jobs data, which showed a mixed picture, and other factors have rattled traders. The uncertainty is hitting the cryptocurrency market, which has become more closely linked to the stock market as the short-term correlation between the two has strengthened.

Bitcoin has had a poor September, falling about 7 per cent. But the largest digital asset has edged higher over the weekend, and was up about 1 per cent on Monday to about $54,800 at the time of writing.

“The market has rebounded slightly, in part, it seems, as some prominent influencers have covered their shorts,” said Sean McNulty, trading head at liquidity provider Arbelos Markets, citing a recent post by Arthur Hayes, co-founder of the BitMEX trading platform, on social media.

Mr McNulty said that Donald Trump, the Republican presidential candidate who supports cryptocurrencies, improving in polls and prediction markets may have also played a role. He reported an increase in demand for options hedges ahead of Tuesday’s debate between Mr Trump and the Democratic Party’s vice-presidential candidate, Kamala Harris, who has yet to detail her stance on cryptocurrencies.

US bitcoin ETFs, which invest directly in the original cryptocurrency, launched with fanfare in January. Unexpectedly strong demand pushed the token to a record high of $73,798 in March. The inflows have since slowed, and bitcoin’s gains this year have been cut to about 30 per cent.

Caroline Mauron, co-founder of digital asset derivatives trading liquidity provider Orbit Markets, said the price of bitcoin could trade in the recent range of $53,000 to $57,000 ahead of US consumer price data on Wednesday. Inflation data could affect expectations for the pace of monetary easing by the Federal Reserve.